Investment Market Analysis

Brisbane Investment Market Analysis

Brisbane is a fantastic city to invest in and continuously attracting a significant number of investors for the last couple of years. Inter-state movers and experienced investors and have realised that the economic growth, lifestyle, job creation and affordability of Brisbane are way better than what capital cities like Sydney and Melbourne can offer. While these southern cities are losing investors, Brisbane has emerged as a great alternative. It has witnessed a constant growth in median house price since 2012. A recent survey has found that more than 25 suburbs in Brisbane are rising steadily. The leafy suburb of Graceville deserves a special mention here as it is the most in-demand suburb in Brisbane. It also included in the top 50 hottest suburbs of Australia.

The Brisbane market is full of affordable options, and there is also a feeling that the market is yet to reach its peak. The population of Queensland capital is growing quickly, and so does the infrastructure of the city. As more and more blue-chip businesses are realising the numerous benefits of the city, employment prospects are also increasing. Massive big-ticket projects like Queen’s Wharf, the Cross River Rail, Howard Smith Wharves and the airport’s second runway are already underway. Brisbane is notably growing into a big city and being acknowledged by top investors. There is no doubt that It is an excellent place if you are looking to invest, but before doing that, you should analyse the following factors.

Look for flood zones

In case you don’t know, there was a big flood in 1974 as well as in 2011. In those floods, numerous houses went underwater. With an intention to tackle this problem in future, the Brisbane City Council has the flood maps. With the help of these maps, you can go and easily recognise whether the property that you are interested in, come within the flood area. Without spending any money on the map, you can also know if a particular property was under water at any stage in the past. Experts say you should not opt for any property that has been underwater before — no matter how minimal the impact was. If you can consult the flood zone maps of Brisbane, you can find some wonderful grade properties outside the flood-prone area for investment purpose.

Lifestyle in Brisbane

Before planning your investment, you need to know the lifestyle of the city. You need to understand what the locals want and do not try to impose your interstate experience. The lifestyle of Queensland capital is unique and quite laid back, so you need to act accordingly. For instance, if you are in Brisbane, a carport is fine. However, if the place is Sydney or Melbourne, you need a lock up garage. Moreover, in Brisbane, you require an air conditioner as the heat can be intense, especially from December to February. Also, everyone loves the beautiful period home as there is a shortage. But if you are Brisbane, you will need a lot of maintenance because the sun is quite harsh on the building materials. Therefore, you need to take the appropriate steps as per the requirement.

Big City Council

If we talk about places like Sydney, Melbourne and Perth, there are different suburbs under different councils. It means, what you are allowed to do in a particular suburb, you might not do that thing in some other suburb. This is because different the councils have different rules and you have to obey the respective rules. But if you look at Brisbane, it has one City Council, and that is a real advantage! Having a similar set of rules in different suburbs is a great thing. If you want to buy property in the best suburbs in Brisbane, this keeps you away from all unfavourable surprises and confusions. This makes this place so good, particularly when you are looking for ways to add value to the investment property.

Economic Outlook

The economy of Brisbane is expected to accelerate in the next couple of years with the focus shifting from only manufacturing to various more broad businesses and an increase in consumer spending. Keeping in mind the track record of the last few years and the current scenario, industry leaders are forecasting the economy of Queensland to grow at a rate of 3.8% per annum in the next five years. If that happens, it can leapfrog the expected national average growth (3.0% per annum). This one of the crucial property investment lessons you should know.

Look at the Infrastructure

Over the last couple of years, the spending of Brisbane on its infrastructure has been rapidly growing. More than $21 billion worth of private and public infrastructure works have been approved in the inner ring alone. Brisbane is undergoing a massive influx of investment in various sectors like transport networks, innovative civic spaces and entertainment hubs. The investment is a part of an initiative from governing bodies of Queensland to create well-organised systems for the future population of Brisbane. Eventually, this excellent infrastructure will enhance the standard of Brisbane as a global city. It will further create thousands of jobs, directly and indirectly.

Importance of Location

Brisbane gives you the opportunity to invest in one of the fastest growing economies in Australia. Investors have the chance to get hold of quality properties positioned perfectly for the capital growth. When comparing Brisbane and Sydney, the investors of Sydney need to spend almost twice to get something equivalent. This is the biggest reason why the new economic environment of Queensland capital is likely to draw the attention of new buyers. Factors like lesser stamp duty, lower entry prices, higher yields and the potential for great long-term growth of capital has outshined other markets across Australia.

Embrace the hills

Particularly the north of Brisbane it’s hilly, but when you think about the climate of that place, it’s fantastic. People like a breeze coming in and take away some heat. Not only that, everyone loves the incredible outlook and the real outdoor lifestyle, especially in those perfect summer days. Even in the middle of winter, the weather is quite beautiful there. That is why it is so important for you to embrace those hills. However, you need to make sure you avoid living areas that face the westerly sun as it is blazing in the afternoon. When you drive around on the western side of Brisbane, you will find that people have got shutters on their windows to get protection from the sun.

The Population Growth

The population is growing rapidly in Brisbane, and it is estimated that in the next 10 to 15 years, Queensland capital will reach 3 million from 2.3 million as people relocating from both Australia and overseas. As it helps to grow the job market of the city and strengthen the economic condition, the overseas migration will further increase. Experts believe that the affordability of accommodation is likely to encourage and increase the interstate migration. With a fast-growing economy and excellent potential population growth, Brisbane is going to be a healthy property market over the next 10 to 12 years at least.